Article on the importance of investing early

[Hedy]

Admittedly, this is extremely self-serving in that it's coming from Vanguard, but with kids starting summer jobs soon, I thought it might be of interest to this forum.
https://flagship.vanguard.com/VGApp/...162007_ALL.jsp

[bigsaver]

I kind of wished I knew about this when I was younger. Only problem was I was so focused on school and extracurricular activities I never had the time to earn money anyway.

[Hedy]

Originally Posted by bigsaver

I kind of wished I knew about this when I was younger. Only problem was I was so focused on school and extracurricular activities I never had the time to earn money anyway.

Yeah, I hate to say it but I think that even if it had been waived under my nose at 15, I would have been like "But I'm saving for college! That's a whole three years away!"

[jIM_Ohio]

Learning late is better than not learning at all.

[JBinKC]

I started my IRA contributions immediately after college and fortunately I only had to put only 10 years of contributions and a small 401K rollover into the account which was converted to a Roth in 1997. Starting out young is imperative for all types of investors.

[Hedy]

Originally Posted by JBinKC

I started my IRA contributions immediately after college and fortunately I only had to put only 10 years of contributions and a small 401K rollover into the account which was converted to a Roth in 1997. Starting out young is imperative for all types of investors.

I think starting kids saving for retirement in their teens is going to become the new right out of college-I started right out of college, but missed out on several potential interest compounding opportunities by not investing in my teens.

[wellheeled]

I can't but help feeling a little "behind the curve" when I read that article. If only I started investing earlier! Ah well.

If I have a kid I'm telling him/her to start a Roth IRA as soon as he/she can work.

[poundwise]

Its very interesting but likely not useful for most folks since Vanguard requires $1000 minimum to open an account an invest (STAR Fund). Not exactly the cash I had on hand when I cut grass as a teenager. I know times have changed... but I don't think by that much.

[tinapbeana]

i would venture to say that as a child (or parent of a child), saving for college (or other such goal) is probably more useful than saving for retirement. getting out of college without debt is IMO one of the greatest steps forward any 22 year old can get.

add to that the fact that today's 1 yr old is likely to look at a retirement age of 75 or higher, giving over 50 years to save for retirement versus just 18 to save for college.

[Hedy]

Originally Posted by poundwise

Its very interesting but likely not useful for most folks since Vanguard requires $1000 minimum to open an account an invest (STAR Fund). Not exactly the cash I had on hand when I cut grass as a teenager. I know times have changed... but I don't think by that much.

I definately socked away more than enough to do that when I was a cashier at 16..then again, that was in the dark ages when you got bonuses to stay at a minimum wage job, and the econonmy was otherwise booming.

[Hedy]

Originally Posted by wellheeled

I can't but help feeling a little "behind the curve" when I read that article. If only I started investing earlier! Ah well.

If I have a kid I'm telling him/her to start a Roth IRA as soon as he/she can work.

I'm trying to tell myself that at least I missed the post 9/11 stock market fun. Glad to see you here-I'm a fan of the blog.